Post Award Activities Manual

The Asset Management Division is responsible for monitoring and processing all post-award activities for developments involving Housing Tax Credits, HOME funds, National and State Housing Trust Funds, and Neighborhood Stabilization Program (NSP) funds. This manual outlines the procedures and instructions for completing activities including, but not limited to, 10% Test, Construction Status Reports, Cost Certification, LURA Origination, LURA Amendments, Application Amendments, and Ownership Transfers.

Post Award Activities Manual - Updated July 2021

Questions about any item below? Asset Managers have been assigned to each region and can answer any questions related to the post award activities detailed in this manual. To find your assigned Asset Manager, visit Asset Management Contacts List .

HOME, HOME-ARP, NHTF, NSP, and TCAP-RF Rent Approval Requests

HOME, HOME-ARP, NHTF, NSP, and TCAP-RF Developments committed funds on or after August 23, 2013 on which construction has been completed are required by 24 CFR §92.252(f), §93.302(c)(2), and 24 CFR §92.219 to submit annual rent approval requests to their Asset Manager by no later than August 1st of each year. Rents will be evaluated and approved based on submission of the Annual Rent Approval Request packet. Rents will be reviewed and approved within 30 days as long as the form and all exhibits have been received. A copy of the approval letter will be uploaded to the Development’s CMTS profile.

Rent Approval Tool – Updated July 2023 (XLSX)

Construction Status Reports

Construction Status Reports must be submitted by all multifamily developments (HOME, NHTF, TCAP, 9% HTC, 4% HTC/BOND) currently in construction. Reports begin for 9% HTC Developments on October 10th following the year of award, for 4% HTC Developments with Post Bond Closing Documentation due 60 calendar days following closing on the Bonds, and for MFDL only Developments, 90 calendar days after closing. Reports are due by:

• April 10th (Reporting period: January – March)
• July 10th (Reporting period: April – June)
• October 10th (Reporting period: July – September)
• January 10th (Reporting period: October – December)

The submission of construction status reports will continue on a quarterly basis until the entire development is complete as evidenced by:

• Certificates of Occupancy for each building,
• An AIA G704, or
• The Final AIA G702/3 or equivalent.

A fee of $2,500 will be assessed for construction status reports not submitted by the deadline if an extension to the due date is not requested 30 days in advance. Fees will increase, as published in as published in §11.901 of the Qualified Allocation Plan (Subchapter E – Fee Schedule, Appeals, and other Provisions), based on subsequent extension requests on the same activity. The Post Award Activities Manual will detail what items must be submitted for initial and subsequent reports.

Minority Owned Business Report Form (DOC) - Updated March 2019

Ownership Transfers

Ownership transfers will be processed according to the requirements in the most recently approved Post Award and Asset Management Requirements Rules and outlined in the Post Award Activities Manual.

Ownership Transfer Forms - Updated March 2020 (XLSX)

CHDO Self-Certification Form – March 2019 (DOC)
(Only Applicable for Property Transfers Subject to ROFR with a TDHCA Certified CHDO Purchaser)

Previous Participation Form Instructions - March 2016 (PDF)

10% Test (§10.402(g)) – 9% HTC Awards Only

In accordance with IRS Notice 2022-05, the deadlines to submit the 10% Test package have been extended as follows:

• 2019 9% HTC Awards – The 10% Test deadline has been extended to July 1, 2022
• 2020 9% HTC Awards – The 10% Test deadline has been extended to December 31, 2022.
• 2021 9% HTC Awards – The 10% Test deadline has been extended to December 31, 2022.

As published in the QAP for the applicable award year, but generally no later than July 1 of the year following the submission of the Carryover Allocation Document, or by the applicable extended deadline, more than 10% of the Development Owner’s reasonably expected basis must have been incurred pursuant to Section 42(h)(1)(E)(i) and (ii) of the Code (as amended by The Housing and Economic Recovery Act of 2008) and Treasury Regulations, 1.42-6.

10% Test – Updated June 2023 (XLS)

LURA Origination (§10.402(i)) – 4% and 9% HTC Awards Only

A Land Use Restriction Agreement (LURA) for Housing Tax Credit Developments must be requested by the Owner before the end of the first year of a Development’s credit period.  The LURA will impose the income and rent restrictions identified in the Development’s final underwriting report and other representations made in the Application. Please see the updated Post Award Activities Manual (LURA Origination chapter) for instructions on requesting this document.

Cost Certification (§10.402(j)) – 4% and 9% HTC Awards Only

Cost Certification is due by January 15th of the year following the first year of the Credit Period for the Development. Should the deadline date fall on a weekend or holiday, the cost certification documentation is due the following business day. If the deadline cannot be met, a request for extension must be submitted and must include information related to why such extension is necessary.

Cost Certification Application – May 2023-V2 (XLSM)

The Asset Management Division of the Texas Department of Housing and Community Affairs hosted a virtual roundtable on the cost certification process on November 18, 2020. A recording of the roundtable is available here: https://www.youtube.com/watch?v=7Ix9I6ja0NI&list=PLIW-C-0ioJwSxFeKWGD_ydAflvtIv1FEz.

Cost Certification Presentation (PDF)

Amendments (§10.405(a))

Owners seeking approval for amendments and changes to the representations made in the application must follow the Amendment process. Please see the updated Post Award Activities Manual (Amendments to Application and Amendments to LURA chapters) for instructions. Deadlines for submissions of Material Amendments (including public hearings as applicable) are shown below. The cover sheet below linked below can be used to double-check your amendment submission for required items and can be submitted with your amendment request.

Amendment Request Cover Sheet Updated March 2020 (DOC)

Legal Document Requests

Owners seeking legal documents from the Asset Management Division can use the below form as a cover sheet when submitting requests to the appropriate Asset Manager. Please see the updated Post Award Activities Manual (Requests for Legal Documents) for instructions.

Legal Document Request Cover Sheet – Updated March 2020 (DOC)

Right of First Refusal – 9% HTC Awards Only

This requirement applies to 9% HTC Developments that elected to provide a right of first refusal to certain entities or organizations in exchange for competitive points during the Application process. The specific requirements under right of first refusal depend on the language used in the LURA describing either a “minimum purchase price” or “fair market value” of the property. The Post Award Activities Manual contains a section addressing ROFR requirements and the form packet is located below.

ROFR Forms – March 2020 (XLS)

CHDO Self-Certification Form – March 2019 (DOCX)

Organizations seeking to qualify as a Community Housing Development Organization (“CHDO”) for purposes of satisfying ROFR must complete a ROFR CHDO Certification Packet. See the 2019 Community Housing Development Organization (“CHDO”) Certification Packet to be used in the event of ROFR for more details.

Qualified Contract

Pursuant to §42(h)(6) of the Internal Revenue Code, after the 14th year of the compliance period, the owner of a development utilizing housing tax credits may request that the allocating agency find a buyer at the qualified contract price.

Department requirements and procedures for Qualified Contract

• Qualified Contract Requirements (10 TAC, Chapter 10, Subchapter E, §10.408 - Secretary of State site)
• Qualified Contract Preliminary Request Procedures Manual (DOC) - Updated March 2019
• Qualified Contract Request Procedures Manual (DOC) - Updated March 2019
• Qualified Contract Excel – use with Qualified Contract Request Procedures Manual (XLS)